The MFSA Consults on a Legal Provision on Settlement Processes
FEBRUARY 21, 2022

The Malta Financial Services Authority (Authority) is currently working on proposed changes to strengthen the process leading to a settlement agreement with a person under investigation for possible breaches of the regulatory framework applicable to them and falling within the remit of the Authority.

Without prejudice to all powers that may be exercised by the Authority in terms of the MFSA Act or any other law, the current MFSA Act does not explicitly provide for the Authority entering into settlement discussions, and it is therefore issuing a consultation process proposing the provision that should be added to the Act.

The proposed legislative provision shall cater for instances where the Authority and the person concerned agree on the terms of settlement.

It must be stressed that any settlement agreement reached will still always involve the imposition of an administrative measure. However, resolving investigations by means of a settlement agreement will ensure that investigations are concluded in a more efficient manner, safeguarding further the general interests and legitimate expectations of consumers of financial services, which is a core function and objective of the MFSA.

The Authority has recently concluded a consultation process on settlement policy. Settlement processes will be developed further linking them to the proposed legislative provision.

Any comments or feedback in relation to this legislative provision are to be addressed to the Enforcement function within the MFSA by sending an email to [email protected], referring to this Consultation, by not later than 14 March 2022.